The United States and several other countries have accused the Chinese government and military of perpetrating cyber attacks against both government and private assets. China's foreign ministry dismissed the Pentagon report published recently as groundless. In that report the Pentagon directly accused China of trying to infiltrate United States computer systems.

China retorted, calling the United States the "real hacking empire." The report maintained that China is stoking the fires behind its military modernization program with technology stolen using cyber attacks from around the world. China has been significantly increasing its military capabilities over the last year, has launched its first aircraft carrier, and expanded its anti-satellite capability.

"Promoting the 'China military threat theory' can sow discord between China and other countries, especially its relationship with its neighboring countries, to contain China and profit from it," the Peoples Liberation Army Daily said in a commentary that was carried on China's Defense Ministry's website.

The newspaper said that the U.S. is "trumpeting China's military threat to promote its domestic interests groups and arms dealers" and that it expects "U.S. arms manufacturers are gearing up to start counting their money."